British engineering giant Rolls-Royce announced it will cut 2,600 jobs, mostly in its aerospace division, as part of a major restructuring.
The restructuring, which is to be implemented over the upcoming 18 months, has been introduced in response to the current economic climate, Rolls-Royce said, which forced the company to increase its focus on cost efficiency.
"The measures announced will not be the last. However, they will contribute towards Rolls-Royce becoming a stronger and more profitable company," said chief executive John Rishton.
Rolls-Royce said most of the headcount reduction will take place next year but it didn’t specify which positions at which sites will be affected.
Rolls-Royce employs over 55,000 people in 45 countries including more than 17,000 engineers.
The firm operates several factories in the UK including the East Midlands, where it employs 12,000 people. A further 1,500 staff are employed at the company’s five sites in the north-west and 2,400 at six locations in Scotland.
Rolls-Royce also announced its new chief financial officer, having promoted David Smith who previously served as a finance director of the Aerospace division. Smith will replace Mark Morris who is leaving after 27 years.
Earlier this year, Rolls-Royce, the second largest manufacturer of aircraft engines globally, announced its economic estimates saying it may fail to grow in 2014 due to cuts in defence spending.
The company warned its profits may further decrease by 3 per cent in 2015 due to cancellations and customer delays.
Rolls-Royce’s global customer base includes more than 380 airlines and leasing firms, 160 armed forces and 4,000 marine customers, as well as 1,600 energy and nuclear companies.